Iraqi army soldiers secure a street in Baghdad. Photo / AP

Iraqi army soldiers secure a street in Baghdad. Photo / AP

Official figures show 535 people were killed in violence in July, the deadliest month for Iraqis in more than two years.

The figures compiled by the defence, interior and health ministries were released late Saturday and showed 1,043 people were wounded last month.

The July death toll is the highest since May 2008 when 563 were killed.

Violence rose as politicians bickered over the formation of the next government. It has been nearly five months since a March parliamentary election failed to produce a clear winner.

Insurgents are thought to be taking advantage of the political impasse, stepping up attacks to try to destabilise the country as the US draws down its forces in Iraq.

- AP